Also known as:nonprofit corporation · non-profit corporations · nonprofit corporations · non profit corporation · nonprofit · not-for-profit corporation
Written by attorneys · grounded in primary & secondary sources — see below
A corporation organized for religious, educational, charitable, or public service purposes rather than for profit. Its governing documents limit distributions to members and dedicate assets to the stated mission upon dissolution.
Sources & Authorities· 28 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
How it applies
Common Examples
6
Lawyer Gifts to Client via Nonprofit
Nora Nash, an indigent client, retained a lawyer through a nonprofit legal services organization. The lawyer provided modest funds for rent and medicine after retention. The organization continued representing Nora without seeking repayment from her or her family.
Nonprofit Advocacy Letters Protected
Nalini Narula, a staff attorney at a nonprofit civil rights group, mailed letters informing tenants of eviction protections and offering free representation. State officials attempted to ban the mailings as improper solicitation. The group continued the outreach because the activity advanced its expressive mission.
Tahoe-Sierra Preservation Council, Inc., a nonprofit, sued the regional planning agency over temporary building moratoria affecting its members' lots. The council argued the restrictions amounted to a taking. The agency defended the rules as necessary to protect the lake basin.
Tahoe-Sierra Preservation Council, Inc. v. Tahoe Regional Planning Agency535 U.S. 302
Nonprofit Church Faces Ordinance
Church of the Lukumi Babalu Aye, Inc., a nonprofit religious organization, planned animal sacrifice rituals central to its faith. The city enacted an ordinance banning such practices after learning of the plans. The church sought to enjoin enforcement of the ordinance.
Church of the Lukumi Babalu Aye, Inc. v. City of Hialeah508 U.S. 520, 113 S. Ct. 2217, 124 L. Ed. 2d 472 (1993)
Nonprofit Group Home Zoning Dispute
Cleburne Living Center, Inc., a nonprofit, sought a permit to operate a group home for intellectually disabled adults in a residential zone. The city denied the permit under an ordinance requiring special approval for such facilities. The center challenged the denial as discriminatory.
City of Cleburne, Texas, et al. v. Cleburne Living Center, Inc., et al.473 U.S. 432, 105 S. Ct. 3249, 87 L. Ed. 2d 313 (1985)
Nonprofit Campaign Finance Limits
A nonprofit corporation sought to use its treasury funds for electioneering communications close to an election. Federal law restricted such spending by corporations. The nonprofit challenged the restriction as applied to its independent advocacy.
McConnell v. Federal Election Commission540 U.S. 93, 226–27 (2003)
Common questions
Frequently Asked
3
How does a nonprofit corporation differ from a business corporation in asset distribution?+
A nonprofit corporation may not distribute profits to members or directors. Upon dissolution its assets must be devoted to the charitable or public purposes stated in its articles.
Can a nonprofit corporation engage in political advocacy?+
Yes. Nonprofit advocacy organizations that inform individuals of rights and offer free representation engage in protected expressive and associational activity under the First Amendment.
May a lawyer share fees with a nonprofit that referred a case?+
A lawyer may share court-awarded legal fees with a nonprofit organization that employed, retained, or recommended the lawyer.
410 U.S. 113 (1973)Constitutional Law
…abortion referral must be readily available through state and local public health departments, medical societies, or other nonprofit organizations. "b. An important function of counselling should be to simplify and expedite the provision of abortion services; it should not delay the obtaining of these services. "c.…